,%20strongSenator%20Sabo%20Muhammad/strong,%20reacted%20to%20the%20presentation%20of%20the%20country's%20Group%20Managing%20Director%20of%20the%20NNPC%20during%20thea%20href=https://ibekachikwu.com/several-problems-in-nigerias-petroleum-sector-and-lasting-solutions-nnpc-gmd/%20interactive%20session/a%20on%20strong“Exiting%20Petroleum%20Subsidy:%20Ensuring%20Self-Sufficiency%20in%20Domestic%20Refining%20of%20Petroleum%20Products”/strongSenator%20Sabo%20said%20that%20the%20issues%20were%20very%20em“disheartening%20and%20worrisome”./em%20He%20stated%20that%20the%20deductions%20from%20the%20country's%20crude%20oil%20revenue%20without%20due%20recourse%20was%20totally%20against%20the%20laws%20governing%20the%20country.These%20are%20some%20excerpts%20from%20the%20remarks%20of%20the%20Chairman%20of%20the%20joint%20committee:em“Permit%20me%20to%20say%20that%20it%20is%20very%20disheartening%20and%20worrisome,%20the%20way%20and%20manner%20subsidy%20expenditures%20soared%20to%20over%20210%%20within%20two%20months’%20period%20from%20average%20cost%20of%20N774million%20per-day%20in%20March,%202018%20to%20N2.4%20billion%20per%20day%20in%20May,%202018./emem“Report%20shows%20that%20NNPC%20as%20a%20sole%20importer%20of%20Petroleum%20products%20claimed%20N843.12%20billion%20and%20over%20N1trillion%20as%20under%20recovery%20in%202018%20and%202019%20respectively%20against%20the%20average%20of%20about%20N511%20billion%20per%20year%20in%2010%20years%20within%20the%20subsidy%20regime./emem“This%20arbitrary%20and%20unsupervised%20direct%20deductions%20in%20the%20name%20of%20Under%20recovery%20from%20the%20country’s%20crude%20oil%20revenue%20without%20recourse%20to%20any%20enabling%20law%20is%20totally%20against%20Section%2080%20(1,%202,%203,%20and%204)%20of%20the%201999%20Constitution%20(as%20amended)./emem“Let%20me%20at%20this%20point,%20crave%20your%20indulgence%20to%20point%20out%20that%20the%20NNPC%20Act%20which%20empowers%20the%20corporation%20to%20submit%20to%20the%20National%20Council%20of%20Minister‘s%20not%20later%20than%20three%20months%20before%20the%20end%20of%20each%20financial%20year,%20estimates%20of%20its%20expenditure%20and%20income%20relating%20to%20the%20next%20financial%20year‘%20does%20not%20negate%20the%20supremacy%20of%20the%20Constitution%20on%20appropriation%20matters./emem“The%20Constitution%20is%20very%20clear%20on%20the%20National%20Assembly’s%20role%20in%20appropriating%20monies%20belonging%20to%20the%20Federation%20and%20did%20not%20exempt%20anyone./emem“The%20non-scrutiny%20of%20the%20NNPC%20budget%20by%20the%20National%20Assembly%20makes%20its%20oversight%20role%20on%20NNPC%20very%20difficult,%20if%20not%20nearly%20impossible%20and%20should%20be%20addressed%20as%20quickly%20as%20possible.”/em){kind=link}
The Chairman Senate Joint Committee on Petroleum Resources (Upstream and Downstream), Senator Sabo Muhammad, reacted to the presentation of the country’s Group Managing Director of the NNPC during the interactive session on “Exiting Petroleum Subsidy: Ensuring Self-Sufficiency in Domestic Refining of Petroleum Products”
Senator Sabo said that the issues were very “disheartening and worrisome”. He stated that the deductions from the country’s crude oil revenue without due recourse was totally against the laws governing the country.
These are some excerpts from the remarks of the Chairman of the joint committee:
“Permit me to say that it is very disheartening and worrisome, the way and manner subsidy expenditures soared to over 210% within two months’ period from average cost of N774million per-day in March, 2018 to N2.4 billion per day in May, 2018.
“Report shows that NNPC as a sole importer of Petroleum products claimed N843.12 billion and over N1trillion as under recovery in 2018 and 2019 respectively against the average of about N511 billion per year in 10 years within the subsidy regime.
“This arbitrary and unsupervised direct deductions in the name of Under recovery from the country’s crude oil revenue without recourse to any enabling law is totally against Section 80 (1, 2, 3, and 4) of the 1999 Constitution (as amended).
“Let me at this point, crave your indulgence to point out that the NNPC Act which empowers the corporation to submit to the National Council of Minister‘s not later than three months before the end of each financial year, estimates of its expenditure and income relating to the next financial year‘ does not negate the supremacy of the Constitution on appropriation matters.
“The Constitution is very clear on the National Assembly’s role in appropriating monies belonging to the Federation and did not exempt anyone.
“The non-scrutiny of the NNPC budget by the National Assembly makes its oversight role on NNPC very difficult, if not nearly impossible and should be addressed as quickly as possible.”